> I believe that fraudsters have been pumping up bitcoin because they know that it attracts attention to the whole market. Yep, sounds plausible. > Most peopl

> I believe that fraudsters have been pumping up bitcoin because they know that it attracts attention to the whole market. Yep, sounds plausible. > Most people trading bitcoin don't buy it with a money transfer. They go to an exchange. True as well I guess, p2p exchanges exist but aren't as widely used as exchanges. > As the fraud is unwound, we'll wind up with people trying to convert bitcoin to money to pay off as much of the Ponzi schemes as possible. When that happens, the bitcoin ecosystem will wind up in a world of pain. Yes, this may well happen to a certain degree. But the thing you're maybe underestimating might be: there are (at least it seems to me with my biased world view) quite a few, let's call them "believers/hodlers", who won't try to get rid of their coins but who'll rather try to buy more, when the price drops due to such an "unwinding" event. It depends upon how many Bitcoin suddenly get offered on the market for whether potential buyers will be able to soak it up and thus keep the BTC price from crashing all that radically (say below 10k USD). I'd guess such a group of stubborn "believers" exist in some way in many other speculative assets/bubbles, so they're of course not exclusive to Bitcoin. Yet something makes me think that many of the Bitcoin "believers/hodlers" might be significantly more stubborn in their belief that just continuing to DCA all the way through such an "unwinding" event is the best option, compared to, say, the tulip bubble believers (whom I know nothing about, except they existed .. I'm just a fool who has thoughts about things). > Anyone who has studied bubbles and market crashes will recognize that this won't be a slow process. Nobody wants to be the last to hit the exits. So once it is clear that people are hitting the exits, everyone tries to at once. This may be the case for the bigger part of people who own Bitcoin. But as I wrote, I think there's a significant share of people who just won't hit the exits, even at 5k or less. > It is a painfully slow, expensive, and inefficient way to transfer money. But, structurally, it is an artificially limited resource whose value comes from what people think it will be in the future. This provides inherent incentives to try to make the price go up if you have some. (Which is what drew the fraudsters in.) Again, I don't disagree. But I think people who're interested in Bitcoin due to its key properties ("artificially limited resource" ..), will collectively learn through the repeated unwinding of fraudulent businesses _on top_ of Bitcoin, that the long-term way to go and not get burned is without these _on top_ services and just stick to plain Bitcoin. I think one USP property of Bitcoin in the financial world is: the possibility to stick to the plain asset, without any intermediaries who basically make the rules for you accessing your assets (arbitrage, changing conditions, embezzlement, ..). Many people in the space already made the decision to not trust any intermediaries but do self custody instead. With the next unwinding, more will likely follow.